The coffee brewing industry has seen significant changes in the last five years through mergers and acquisitions, evolving consumer tastes, and different branding strategies. Competition in the coffee market is high, so a unique strategy is important to attract customers. While Starbucks is known for its high quality brand and atmosphere, it also has weaknesses like high prices, fewer outlets in India located in high-class areas, and coffee quality that does not always match its reputation. There are opportunities for Starbucks through partnerships like with Tata and expanding to tier two cities, but threats include strong competition from established outlets and a lack of coffee farm ownership in India compared to competitors.
2. In the last five years, the coffee brewing industry has seen so
much activity in terms of massive changes in the landscape
of coffee brewing companies.
Changes range from mergers and acquisitions to changing
consumer tastes and finally, to different branding strategies.
The competition on the coffee market is quite high
A unique strategy is important to attract customer
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3. Strength
Famous brand which is associated with high quality
People like Starbucks atmosphere and ambience
Well trained and treated employees
Weakness
Highly price products
Starbucks has less outlets in India and often is in high class
locations
Coffee quality is not as good as reputation
In no mood for Aggressive expansion into tier 2 cities.
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4. Opportunities
Tie up with the Tata could have a huge advantage for them, but
its too soon to predict their success or failure
Grow in tier two cities as well
Threats
Already well established Coffee Outlets presents huge
competition
Lack of ownership of coffee farms in India as compared to its
competitors
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